New SEC chairman wants strengthened infrastructure, compliance for brokers

Chairman, Securities and Exchange Commission (SEC), Faizal Salieh encouraged the stock brokers to develop in-house research capabilities which is now a requirement under the new SEC Act, review risk mitigation policies and processes, ensure succession planning and strengthen the compliance function.

At a meeting with the stockbrokers on Monday, for the first time since taking office, he suggested that a Compliance Officers Forum be created to enable exchange of views, best practices and

improve compliance in the market.

The industry participants while appreciating various initiatives taken by SEC, shared their ideas and suggestions to develop the market. Among the topics that

received significant attention were, listing of identified state-owned enterprises, attraction of captive funds such as pension and retirement funds to the market and listing of Green and Blue bonds, and

Infrastructure Bonds.

Mr. Salieh said that the SEC has more teeth under the new Act and it is mindful in playing a balanced regulatory role with due consideration to both market development and market facilitation. He emphasised the need to safeguard investors while helping the market grow by doing the right thing the right way and added that the stock brokers are the front-liners in the market who engage with clients directly and therefore should act with due responsibility in advising clients and trading on the exchange.